20 essential renovating for profit...

20 ESSENTIAL RENOVATING FOR PROFIT TIPS

How a Small Budget Renovation Can Return a Big Profit

TheUltimateGuideToRenovation.com.au | 2

20 ESSENTIAL RENOVATING FOR PROFIT TIPSHow a Small Budget Renovation Can Return a Big Profit

Adding Value with RenovationThere’s no doubt that a strategic renovation or makeover can really pays dividends when it comes time to sell. But that doesn’t mean that you have to spend a fortune.

Spending just a few thousand dollars in the right places can potentially generate tens of thousands of dollars in value.

But before the fun can begin, there just needs to be a word of caution...

Renovating to add value is different from a normal renovation. It’s all about renovating to the tastes of your buyer and not your own personal tastes.

Renovating to sell is only about adding value. What it is not, is an avenue for self-expression.

This is an area where so many people have difficulty, but the important thing to remember here is that you are not your buyer. You need to cater to what the majority of buyers in your area are looking for and to the broadest possible tastes.

So with the serious stuff out of the way, let’s look at where the real value can be added.

‘If you are

interested in

adding value

to your home

and you believe

your home

has makeover

potential, then

this guide will

show you how

to unlock that

potential’.

http://ultimateguidetorenovation.com.au



Renovating for High ReturnsThere are certain areas of a house and particular improvements that offer a high return. Our goal is to multiply every dollar spent, which means for every dollar we spend, we want to add a minimum of two dollars to the resale price of the home.

But it’s actually possible to do far better than this.

Give Your Home “Curb Appeal”Studies have shown that a large percentage of buyers decide whether or not they are going to buy a home, before they even set foot in a house.

That it is why it so crucial to make a good impression by creating curb appeal and a welcoming entrance to the home. Even if your home is in good shape, there are probably a few things you can do to make it really sparkle. This is what’s known as “curb appeal,” and experts agree that making a good first impression is a crucial factor in attracting buyers. Improving your home’s curb appeal can be as easy as:

• Tidying up the yard• Mowing the lawn• Washing windows• Touching up exterior paint• Adding plants and flowers• Adding a good quality letter box• Adding shiny new street numbers




Resurface an Old Driveway or PathYour driveway and the path to your front door are also very important. It is quite easy to resurface paths and driveways using inexpensive material such as crushed granite or Lilydale topping.

LandscapingUsing even a small number of architectural plants such as cordylines you can also give a real lift to the curb appeal of your home.

You may also be able to make use of a local nurseries design services. These are often free or at a minimum charge, at the end of which they provide you with a landscaping design plan and plant list.

Subject to your individual circumstance, these are some other things that you can do to improve curb appeal.

• Paint facade, windows & trims• Repaint the roof• Render outside walls• Fencing and landscaping• Paint concrete driveway or patio• Install a carport• Paint the fence




Entrance to Your HomeThe first impression on approaching your home is also very important.

Create a clean, light and welcoming entrance to your home. If the entry is dark then consider an optical illusion like using half strength paint (of the same colour you are using in other house) in this area to give the appearance of it being lighter.

You can also:

• Install a new front door• Install a new knocker or handle• Place architectural plants on either side of entrance

PaintingPainting probably generates the highest return of any work you can carry out on a renovation.

Repainting can dramatically change the look and feel of a property, as well as substantially increase its value.




Choosing ColoursChoose only a few colours and keep them light and neutral: Remember it’s not about what you like, it’s about appealing to the broadest possible market (the ‘buyer’ in your market).

Light surfaces are the quickest way to create a light, bright, and clean looking space. Resist the urge to do ‘feature walls’.

Don’t skimp on preparation, it may seem unnecessary, after all you don’t have to live with it day in, day out. But the time you spend preparing your surfaces will be rewarded with less time later on to repaint.

Repair Before ReplaceBefore you rip something out and throw it in the skip, ask yourself: Can it be repainted?

Does it really matter if the laundry shelves are not brand-new? Or if the inside of the wardrobes aren’t completely up to date? Often it doesn’t.

These are what professional renovators call low return items, meaning that money spent on these items will not generate a financial return when selling. A simple coat of paint will suffice for these items in most cases.

Even though these are small things, it does all add up and it’s also money that comes straight off your profit.

Floor Polishing and CarpetIf painting is the highest return item, then it is closely followed by floor polishing and new carpet.

Floor PolishingFloor polishing can add fantastic bang for buck. It typically takes 3-5 days to complete and you won’t have access to the interior of your house for the majority of this time.

If you have lighter floorboard such as baltic pine, it’s a good idea to darken them using stain.

Darker coloured floorboards such as dark red and dark chocolate have a higher perceived value than lighter ones. Get your floor sander to make you up a sample on a small piece of floorboard.




CarpetMost buyers prefer carpet in the bedrooms. Be sure to shop around, sometime it’s possible to get cheap prices on end of the role and discontinued rolls.

KitchensMost kitchen improvements usually offer high returns. The smaller your investment, the higher the potential for recovering costs.

Avoid budget-breaking extras such as state-of the-art hob, oven or premium counter tops. Buyers will pay special attention to cleanliness, layout and storage capacity. Something as simple as replacing the taps with a tall chrome kitchen sink mixer spout can make it look suddenly very European and modern. Other simple fixes to upgrade and add value.

• Resurface kitchen benchtops• Straightened kitchen cupboards and drawers• Paint kitchen cupboards doors• New cupboard handles• Replace light fittings with modern alternatives




BathroomsLike kitchens, bathrooms improvements can also offer high returns when done properly.

Avoid completely gutting the bathroom and starting from scratch, because this can be very expensive. Look into low cost options that get you the clean and tidy look you are after.

Painting walls and/or painting ceilings is the least expensive way to improve your bathroom. You can even paint over tiles or use a special substance to paint baths.

Even something as simple as adding a new colourful shower curtain and a clean new toilet seat can make a difference.

Change the TapwareConsider using replica designer tapware; It looks great, is cheap and conforms to AS-standard.

Many online bathrooms and kitchen stores have popped up in the last five years, which has meant that things like tapware and door handles can be purchased for a fraction of what they used to be. Also check out eBay stores.

Replacing the showerhead in the bathroom with something quite snaky, long and silver with several water flow options can also help it seem more luxurious and expensive.




Bathroom Renovations• Paint linen cupboard• Paint or replace tiles• Resurface the bath• Replace bathroom mirror• Replace vanity• Replace handles

• Replace towel rails and toilet holder• Replace shower screen• Install new shower curtain• Replace the toilet seat• Make it light and bright• Add a bit of luxury two showerheads

BedroomsThink of the buyers needs; consider supplying wardrobes, even if they are not built-in.

LaundryConsider making this part of the bathroom or creating a European laundry in a cupboard. Then you can use the existing laundry to give yourself an ensuite, second bathroom or small study.

Living RoomsLiving rooms are for living in so make them part of the flow, think about opening up walls to make them part of a kitchen/living area. Value adding items to consider in the lounge room

• Painting• New light fitting or pendant• Polishing floorboards• Fireplace revamp• Installing modern

blinds




Floor PlanIs it possible to manipulate the floor plan to maximize the space to add value?

If you can’t add or remove walls, consider how best to create flow and harmony within a space through colour scheme, window treatments and floor coverings.

Turning a Spare Room into a BedroomIn some cases, you won’t have to do a whole lot to turn a spare room into a bedroom. If your property has a sunroom instance, you may want to consider turning it into another bedroom.

But, here’s something to consider…Does the property benefit from the office, sunroom, den, or other spare room?

Low Return ItemsAs discussed, this type of renovating is all about where you can spend the least amount of money to add the most value as quickly as possible. This is done by spending money on high return items.

Unfortunately in nearly every renovation project there are also low return items, or even worse, no return items. These are items of work need to be done in order for the house to function properly and safely, but have no perceived value and therefore don’t add to the resale price.

Typical low return items are:• Gutters• Fencing• Roof repair• Floor leveling / restumping.• Plaster cracking

Typical no return items are:• Plumbing• Foundations• Wiring• Pest damage




“Renovation has been very kind to me; It’s been central to the property investment strategy that i have used to build a multimillion dollar property portfolio.

But for me it’s definitely not a case of just renovate and hope for the best, there are a strict set of rules that I follow and it’s these rules that make it possible for sss to make consistent profits in any market.

I hope you have enjoyed my 20 essential tips!

The Ultimate Guide To Renovation 2014 is coming…Past students are absolutely raving about it! and this year it's back with some exciting new additions!!!

What's included:

✓ The Complete Renovation Process in Clearly Illustrated, Task-by-Task Video Tutorials

✓ Week Q&A calls - Mastermind group - Workbooks and Checklists

✓ National Trade Card - Huge Discounts - Wide Range of Renovation Materials, Fixtures & Fittings

✓ Renovating to Sell – Buy Renovate & Sell for Lump Sum Profits

✓ Renovating to Rent – How to Supercharge Your Property Portfolio Using Renovation

✓ How to Systematically Identify the Right Suburb, Right Street and the Right House

To be notified when the course is open for enrolments? Go to TheUltimateGuideToRenovation.com.au

Jane Slack-Smith

Learning from a Professional

© 2013 Your Property Success


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